In microsoft.public.money, cndesu wrote:

- quote -

Note that in setting up a loan where you know the schedule of
payments, it is best to leave the interest rate blank so that Money
calculates it.

Just now I got the information from Mortgage broker, that the interest
calculations are monthly, even for Fixed Rate Mortgage.
So the option "Payment is due" is right for this.
Thanks for the help.

--
Chanikya


"cndesu" wrote:

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They said the banks calculate the interest on daily basis but compounded
monthly as credit card companies do! This is valid only to Variable Rate
Mortgage. But for Fixed rate Mortgage the interest is calculated and
compounded twice a year. But I donot know the interest is based on the amount
at the start of six-month slot!
--
Chanikya


"Dick Watson" wrote:

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I've heard the same. But the OP wrote "bank said is Interest is calculated
monthly".

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:uUJy42U9FHA.2844[at]TK2MSFTNGP10.phx.gbl...
- quote -

I recall having heard somewhere that Canadian mortgages are calculated
differently. Maybe a Canadian user can correct me?

Comments inline.

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:58728827-2662-4911-8185-3DDAE18C0A25[at]microsoft.com...
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Waht makes you think it's not calculating correctly given the data it has?
Does it know the current (variable) interest rate?

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I suspect Payment is due is the best bet.

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If you want to go find them, use either the interest category that the Loan
uses or use the Payee. Find and Replace is somewhat lame.

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Loan Payment is ONLY for Loan Accounts with defined payment schedules. It is
inappropriate for any other type of account. Credit card payment should use
Transfer or Credit Card Payment; transfers to investment accounts should use
Buy Investment/CD or Transfer, as appropriate.

Sorry once again doubt arised!
In the loan payments "special category" the calculations for the principal
and interest splits were calculated correctly for fixed interest rate
mortgage but where as for variable interst rate mortgage it is not? why so? I
checked the initial amount in the mortgage, number of payments, interest rate
(especially). But the calculation I could not understand. What the bank said
is Interst is calculated monthly so in the setup should I say "Payment is due
" option or "Lender receives payment" option or "Two times a year(Canadian
Mortgages)". I had set up for two times a year option. Is it correct?
Second, this special category "Loan Payment" I cannot find in "Find a
transaction" menu, I find only Income and Expense Categories there, but I
could not find any special categories there. Are they found only in
Transaction Forms?
Third, Should I continue the same for Credit Card Payments, Transfers to
Investments also, I think the the balance sheet would be perfect!

--
Chanikya


"Dick Watson" wrote:

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So can I. Thanks for the feedback.

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:355ECE47-1B5A-402E-B736-41E7568C1524[at]microsoft.com...
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Thanks for your help. I got it. I appreciate for your patience in explaining
with all steps.
Thanks once again, I can sleep peacefully now!

--
Chanikya


"Dick Watson" wrote:

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I really hate it when I don't test my testcases all the way.

substitute:

....Click the Next> button again. Click the Enter button. Money will complain
that the splits don't match. Click OK. Go to the first empty line of the
split. Enter "principal transfer" in the Category. Click Done. Click Enter.
There, that's a Loan Payment complete with additional principal.

Another, final, attempt below.

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:5B13595E-7B66-4E88-AD4C-4D736129B5FB[at]microsoft.com...
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Electronic payment has nothing to do with this, necessarily. I'm clueless
what made you think what I wrote had anything to do with electronic
payments.

Loan Payment is a Special Category, as discussed previously. Try this in
Money: Navigate to your checking account register. Start a new transaction.
Leave Number blank. Enter today's date. Use "Try This" as the Payee. Use
$10000.00 as the Payment. In the category box type "loan payment" (don't
type the quotes). Hit the TAB key. Money will ask you if you want to track
principal and interest. Click on the Yes button. Click on the Next> button.
Money will present a pulldown list of Loan Account names. If it doesn't list
at least you mortgage Loan account, you've got something fundamental setup
wrong. Pick the name of your mortgage Loan Account in the pulldown. Click
the Next> button again. Enter the transaction. There, that's a Loan Payment.

Your problem as near as I can tell is that you are downloading two separate
transactions from the FIs that are really best represented as both halves of
the same one transaction in Money. This happens to lots of people and is,
sadly, the best the FIs can do for you. Ideally, you would have a Loan
Payment scheduled in Money and/or already entered when you download the
transactions. Were this the case, ideally, Money would be smart enough to
ask you if the downloaded data is the same as the Loan Payment it already
knows about. You'd say yes. Then you would end up with the transfer of
principal to pay down the loan and the expensing of interest all done in one
shot in one transaction called a Loan Payment Special Category transaction.

Since that didn't happen, your only choice now is to live with it or start
deleting the downloaded transactions and adding the Loan Payment
transactions.

You might also want to study the Sample data file and its Loan Account and
Loan Payments.

Do you mean a it is in "bills and deposits" section?
--
Chanikya


"cndesu" wrote:

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Hi,
Sorry may be I am confusing you!
First of all I have Money 2004 Canadian version.
I did not setup onlineservices for electronic payment or Electronic
Transfers through money, but I just download the statements and update the
Money file thats enough for me.
I had set up regular payments ( or pre authorized withdrawal) with the Bank
Y who gave me the Loan and they also give me the statements regularly
(downloadable also).
I download just the statements of Chequing account which is with Bank X say
and from Bank Y. In the downloaded file of Chequing Account I have payment
transaction for the loan. At the same time in the downloaded file of Loan
Account I have same payment transaction but with splits as you said Principal
and Interest portions.
Since I donot want to do any electronic payments or transfers I want to set
up procedure so that in future when I automatically download statements the
net income and net expenses should be the same.
As you said I tried to check various transaction forms.
In chequing account I found withdrawal, Deposit and Transfer. Here in
Transfer I found From, Payto,To and Memo, Date, Amount and Number. Here no
where I find the Category or Loan Payment.
In Loan Account regular loan payment, extra loan payment and other options
were asked for new transaction. If I say regular payment, asking for Chequing
account. If say chequing account as X, a new transaction is made in Chequing
Account which I donot want.
I could not understand this End Condition.....
- quote -

Meaning this is electronically payment or Xfer. Loan Payment is a category
or what ? I could not understand.
If the problem could not get solved I like it to leave as it is I also donot
want to prolong it.
--
Chanikya


"Dick Watson" wrote:

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The "Special Categories" are for things that are not Income or Expense. They
are all forms of transfers--which are net worth neutral. The three I can
think of that Money defines are Transfer, Credit Card Payment (Transfer in
disguise) and Loan Payment (which is really a smart Split transaction that
combines what most of us think of as a Transfer (calling it Principal
Transfer which is nothing more than a Transfer that happens to have one end
in a Loan Account) and a component that is Income or Expense to reflect the
interest associated with the Loan Payment. The amount of the interest
component for the loan payment is calculated from the loan parameters you
defined when you setup the Loan Account. The amount of the transfer
component is calculated by subtracting the interest component from the total
principal + interest (PI) loan payment you defined when you setup the Loan
Account.

You cannot create a "Special Category", nor would you want/need to. They are
ways to tell Money about the movement of money. There is no need to create
more ways. There are already two too many.

Yes, you need to "link" these transactions. But there is no way to "link"
them short of deleting both and replacing them with Loan Payment special
category transactions.

Let me try to summarize what I think you are trying/need to do:

Present Condition:
Cash Account transaction:
(transaction #1) Loan:Payment [an expense transaction in amount $x]

Loan Account transaction:
(transaction #2) [unspecified income reducing balance in amount $x]


End Condition:
Cash Account transaction:
(delete or void original transaction #1 from present condition)
(transaction #3) Loan Payment:[name of loan account] (with splits
Interest Expense (in amount $y)
Principal Transfer:[name of loan account] (in amount $z=$x-$y)

(****no Loan Account transactions entered in loan account****, delete or
void original transaction #2 from present condition, Principal Transfers
from above transaction show up in amount $z)

I'm not sure how many other ways we can explain this.

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:F5A1C4AD-7A58-47EC-ADA6-5BE0EA6DF879[at]microsoft.com...
- quote -

Special Category? How it can it be? As Money says there are only two
categories types, income and expenses.
Ok. Second doubt is there are already transactions loaded in Chequing
account and Loan account. Now if donot assign the transactions income in Loan
account, then these will be an additional income, which is not actually. That
is reason why I want to know how to link those existing transactions. If I am
doing manually in Loan account then an additional transaction would be
created in Chequing account, which is an additional expense, actually which
is not as there is already payment transaction in Chequing account.
Now how to crate a special category which is not an expense! As my doubt is
in one transaction it is expense as in Chequing account as the funds are
going out. in another transaction it is income as in Loan account as the
funds are paying in to the loan account.
May be should I erase the loan account transactions and assign from Chequing
account that the payment is going to Loan account? Then would this be helpful?
Thanks
--
Chanikya


"Chris Cowles" wrote:

- quote -

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:674AADE1-CEEF-4228-878B-6E63039A331A[at]microsoft.com...
- quote -

You're duplicating the payments. You should have only one transaction from
checking to loan, and it should not be an expense category. It should be the
special category called "Loan Payment: X", as Dick earlier advised.

Loan expense can be viewed either by customizing Spending by Category, or by
viewing the Loan Amortization Schedule. You can do the latter either from
the loan account by selecting Analyze Loan in the left column, or from Loan
Amortization under Assets and Liabilities in Reports.

Thanks for the reply.
But my doubt is, I have a chequing account from which my mortgage payments
are going. In the sense these are funds going out. So I made the expense
category and itemized as Loan:Mortgage Payment.
I had also created Loan account to track the outstanding balance. In this
account the payments are same as in my chequing account. In making my net
worth I have to see my assetts vs. Liabilities. So here If I donot use my
bank accounts(sometimes I need bank accounts also for that) then net worth is
ok. But when I include bank accounts then I have to specify where the funds
have come from in Loan account. It is just unassigned income in my Loan
account. And I think the funds get duplicated and donot get the values I
think.
I understand the split transaction for loan account as Principal and
Interest. But I cannot see those funds to make a report of how much I payed
to the bank as Interest on that particular Loan. As I cannot customize Loan
accounts in the report. This is my doubt.

--
Chanikya


"Dick Watson" wrote:

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"Loan:Mortgage Payment" is just another expense category. Nothing "special"
about it. If you have created a Loan Account, try changing it to Loan
Payment:[name of Loan Account]. A Loan Payment has at least two components.
The first is a Principal Transfer that reduces the balance on the loan
account and otherwise looks like a Transfer that reduces the Loan Account
liability. The second is an Interest Expense. It doesn't show up in the Loan
Account as it is just an Expense and is associated with the account that
made the payment. Think of Loan Payment as a Split with a Transfer and an
Expense.

"cndesu" <cndesu[at]discussions.microsoft.com> wrote in message
news:9D8F0A13-9000-4358-B94F-BE9139E0A840[at]microsoft.com...
- quote -

Hi,
I have a peculiar doubt!
In my downloaded transactions from my chequing account I marked the
transactions for the "Mortgage Payments" as Loan: Mortgage Payments category.
And I also creating a loan account to track my mortgage outstanding balance.
But here I cannot assign the category for the payments have come???? As this
is from my chequing account. To categorize this can make a Income Category
which do the needful and want to split the transaction to Principal and
Interest Payments to the loan. But after all those old transactions are
entered how to link those transactions from chequing and loan accounts,,,i.e
the money, where it gone in chequing account and where it came from in loan
account... This is confusing....
Secondly I cannot find the transaction in loan accounts in Interest
subcategory and print or export to excel as I cannot see those amounts in
account register.
Can you help me out?
--
Chanikya